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Review 4

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Bundle of Legal Rights

a)

Occupy, use, improve, explore, utilize, cultivate (farm),mine, drill, build

b)

Lease, license, restrict use, personal privilege, grant/reserve easement

c)

Mortgage, encumber, mortgage is a lien right

d)

Sell, will, devise, gift, dedicate, share, trade, exchange, abandon

e)

All of the above

2.

INVOLUNTARY General encumbrance

a)

Mortgage

b)

IRS Tax liens

c)

Surety Bail Bond

d)

Municipal lien - water/sewer

3.

Are all encumbrances liens?

a)

No

b)

Yes

c)

Maybe

d)

Not Sure

4.

Are all encumbrances easements?

a)

Yes

b)

No

c)

Maybe

d)

Not Sure

5.

Who has the easement on property?

a)

Servient Tennent

b)

Dominant Tennent

6.

An appurtenant easement

a)

is a utility easment

b)

is personal priviledge

c)

is a restriction

d)

runs with title runs with the land

7.

A license is

a)

1 an encumbrance

b)

2 an easement

c)

3 monetary

d)

1 and 2

8.

An easement by necessity

a)

open, hostile, continuous

b)

property is landlocked

c)

over the property line

d)

personal privilege

9.

Does an easement affect

a)

title

b)

property value

c)

physical use

d)

all of the above

10.

For the past 30 years, the Stone family has operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Stone's grocery store is located. The store is now an example of a/an:

a)

violation of eminent domain.

b)

illegal enterprise.

c)

variance of the zoning laws.

d)

nonconforming use.

11.

In order to be valid, all exclusive listings must include:

a)

permission for the listing broker to appoint subagents.

b)

a forfeiture clause

c)

a definite date of expiration.

d)

an automatic renewal clause.

12.

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company, and is called:

a)

blanket financing.

b)

discounting.

c)

warehousing.

d)

package financing.

13.

The Rose family owns a home in a semi-rural area which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway that ends one mile before their home. If the airport is constructed, will this diminish the value of the Rose home?

a)

Yes, because of functional obsolescence.

b)

Yes, because of economic obsolescence

c)

No, because noise from aircraft passing overhead is not recognized as affecting property values.

d)

No, because value would increase due to the location close to the airport.

14.

The primary purpose of Truth in Lending is to:

a)

Disclose the true costs of obtaining credit.

b)

Disclose the true costs of only an FHA loan.

c)

Control the true costs to close a transaction.

d)

Control interest rates on behalf of the consumer.

15.

The recording of an instrument gives:

a)

documented notice

b)

legal notice.

c)

actual notice.

d)

constructive notice.

16.

After the buyer's offer was accepted by the seller, the broker cashed the buyer's deposit check and put the money in his office safe pending the close of escrow. The seller demanded the deposit money, but the broker refused to give it to him. Assuming only the above facts:

a)

The broker needs to look out for the best interest of the seller at all times, even if that means performing acts against the sellers will.

b)

The broker had legal justification to hold only one-half of the deposit; he must give the other half to the selle

c)

The broker had legal justification for refusing to give the deposit money to the seller.

d)

This conduct would probably subject the broker to disciplinary action by the real estate commissioner.

17.

The total collection of rights which may be claimed by private ownership is best described as:

a)

the fee simple system

b)

freehold.

c)

the bundle of rights.

d)

an estate.

18.

Insurance companies not willing to deal directly with borrowers usually pay a loan servicing and preparation fee, and make real estate mortgage loans to purchase indirectly through:

a)

FHA or the VA.

b)

savings and loan associations.

c)

Freddie Mac.

d)

mortgage companies.

19.

Freehold estates include:

a)

leasehold estates.

b)

periodic tenancy.

c)

life estates.

d)

estates for years.

20.

Four powers of government

a)

Taxation,Eminent Domain,Police Power,Escheat

b)

Eminent Domain,Police Power,Zoning, Building codes

c)

Escheat,Taxation, Environmental, Police Power

d)

,Zoning,Escheat, Taxation, Environmental,